Explain How a Devaluation Is Supposed to Reduce the External

question 28

Short Answer

Explain how a devaluation is supposed to reduce the external debt of a developing country. Give two reasons why a devaluation may be less effective than expected.

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Definitions:

Agreement

A mutual understanding or arrangement between two or more parties, often formalized by a contract or other legal document.

Duration

How long something lasts or is present.

Brief Therapy

A short-term psychological treatment aimed at addressing specific issues within a limited number of sessions.

Deserted

Refers to a place or area that has been abandoned or left empty with no inhabitants.